Work Breakdown Structure

The objective of this lecture introduce you to Work Breakdown Structure (WBS) and
other supporting documents.

Topics to be covered.

➢ Work Breakdown Structure

➢ WBS dictionary

➢ Organizational Breakdown Structure (OBS)

➢ Responsibility Assignment Matrix (RAM)

Module 2 – Work Breakdown Structure 1
Prepared by: Booz Allen Hamilton
 What is a Work Breakdown Structure?

The Work Breakdown Structure (WBS) is a tool that defines a BEST Management
Books
project and groups the project’s discrete work elements in a 1.

way that helps organize and define the total work scope of the
project. A WBS element may be a product, data, a service, or
Project Management
any combination. WBS also provides the necessary framework - An Introduction
1.1
for detailed cost estimating and control along with providing
guidance for schedule development and control.
Additionally, the WBS is a dynamic tool and can be revised and updated asWriting Editing Publishing
needed by the project manager. Text Book Text Book
1.1.2
Text Book
1.1.1 1.1.3
Each descending level of the WBS
represents an increased level of detailed
definition of the project work. As you can Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing
1.1.1.1 1.1.1.2 Chapter 1 Chapter 2 Chapter 3
see in this WBS for developing the BEST 1.1.1.3
1.1.2.1 1.1.2.2 1.1.2.3
Management Book, the work is broken
down into all the discrete elements of
work, the total sum of which represents all Project Project Project Budget & Scheduling Project Auditing Administrative
Selection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout
the work and products necessary to 1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2 2
produce the book. Prepared by: Booz Allen Hamilton
 What is a Work Breakdown Structure?

After reviewing the WBS on the previous page, an important point needs to be reviewed.
Although a WBS can be depicted so as to look like an organizational chart, it IS NOT
an organizational chart.

BEST Management
Books
1.
Remember the WBS defines a
project and groups the project Project Management
- An Introduction
elements for managing a project. 1.1

An organizational chart describes

the project team that will Writing
Text Book
1.1.1
Editing
Text Book
1.1.2
Publishing
Text Book
1.1.3

accomplish the project.

Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing
1.1.1.1 1.1.1.2 1.1.1.3 Chapter 1 Chapter 2 Chapter 3
1.1.2.1 1.1.2.2 1.1.2.3

Project Project Project Budget & Scheduling Project Auditing Administrative

Module 2 – Work Breakdown

Selection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout
1.1.1.3.2 Structure 3
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3
Prepared by: Booz Allen Hamilton
 WBS - Purpose

• To plan a project, the total scope of work must be:

– identified
– subdivided into manageable segments
– assigned to individuals responsible to do the
work
– documented

FileName.ppt 10/11/2022 Page 5

6
Developing the WBS

• Divide the total work of the project into major groups...

• ...then subdivide these groups into tasks...
• ...then divide these tasks into sub-tasks
• Subtasks should be small enough to permit adequate control and
visibility
• But avoid excess bureaucracy!

11.10.2022 6
 • Redecorate Room
7 Example  Prepare materials
▪ Buy paint
WBS ▪ Buy a ladder
▪ Buy brushes/rollers
▪ Buy wallpaper remover
 Prepare room
▪ Remove old wallpaper
▪ Remove detachable decorations
▪ Cover floor with old newspapers
▪ Cover electrical outlets/switches with tape
▪ Cover furniture with sheets
 Paint the room
 Clean up the room
▪ Dispose or store left over paint
▪ Clean brushes/rollers
▪ Dispose of old newspapers
▪ Remove covers
11.10.2022 7
 Building a WBS

Armed with the basics of the WBS, it is

time to examine them in more detail
and to begin to understand how to
build one. To do this, let’s look at
building a WBS for the construction
of a single-family home. First, take a
moment to familiarize yourself with
some background information about
the construction company, which
appears on the next page.

Module 2 – Work Breakdown Structure 8

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 WBS: Structure

The ACME Housing Corporation, which you own, has been contracted to build its first house.
You want to be able to manage your projects effectively and efficiently, so you charge your
project managers to develop an appropriate WBS. You decide to manage the project by the
individual tasks necessary to complete the house.
You hope that this is the first of many houses that ACME will build, so you start the WBS with
ACME in the highest position, or Level 1. Accordingly, Level 1 is given a WBS code of 1. You
assign the WBS code of 1 to the highest level because all future projects (houses) will be
summarized at Level 1.
NOTE: For ease of explanation, our example will assume the following:
• Design is complete Level 1 →
• All permits issued
• All Material ordered
• Inspection happens Module 2 – Work Breakdown Structure 9
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 WBS: Structure

With Level 1 established, you can begin to complete the WBS. But what should the next level be?
The logical next level for ACME is the project level. Level 2 is the level for each individual
project, or house, that ACME undertakes. As the chart shows below, Level 2 is identified at the
project level: House.
Appropriately, the code for Level 2 corresponds to Level 1. In this case, the code is 1.1.

Level 1 →

Level 2 →

Module 2 – Work Breakdown Structure 10

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 WBS: Structure

Now the WBS for the housing project is complete, right? Actually, no, the WBS is not
complete. At this point you determine that you want to divide the work into the major
elements needed to build a house. You choose to divide Level 3 into six elements: concrete,
framing, plumbing, electrical, interior and roofing. You realize that these are both major
deliverables and milestones for managing the project. They also enable you to get to your
goal of managing the project by task.
Notice the WBS codes at level 3. Each is unique to the project and starts with the WBS code
from the level above (1→1.1→1.1.1). Now lets look and see if another level is needed.

Level 1 →

Level 2 →

Level 3 →
Module 2 – Work Breakdown Structure 11
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  Level 1

 Level 2

Level 3 →

Level 4 →

Module 2 – Work Breakdown Structure 12

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 WBS: Structure

The ACME WBS is taking shape, but it does not quite define the project at a level that
shows needed tasks for completion. To do this, one more level needs to be included.
Level 4 of the WBS will enable us
to manage the project as  Level 1
desired. All of our contractors
fit into specific elements at level  Level 2
4, and so do all specific
departments. As with the Level 3 →
previous Levels, note the WBS
codes that have been assigned
to the tasks and their Level 4 →
relationship to the previous
Level.
Module 2 – Work Breakdown Structure 13
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 WBS: Structure

What do you think? Is the

WBS complete? Does it
enable the manager to
manage at the task level?
After a review to make sure
that only approved scope is
included, our WBS is
complete. It does include
the necessary components
to manage the project by
task.

Module 2 – Work Breakdown Structure 14

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 Work Breakdown Structure (WBS) Tree

1 ACME Housing Corporation

The graphical structure of the WBS is an 1.1 New Home Construction
1.1.1 Concrete
easy way to identify the project 1.1.1.1 Pour Foundation
components and relationships of those 1.1.1.2 Install Patio
1.1.1.3 Pour Stairway
components; however, the WBS can be 1.1.2 Framing
1.1.2.1 Frame Exterior Walls
displayed in another format as well: the 1.1.2.2 Frame Interior Walls
Tree format. Both formats are acceptable. 1.1.2.3 Install Roofing Trusses
1.1.3 Plumbing
The graphical format is at times easier to 1.1.3.1 Install Water Lines
1.1.3.2 Install Gas Lines
understand but can take up considerable 1.1.3.3 Install B/K Fixtures
space in a report. The tree is not as easy 1.1.4 Electrical
1.1.4.1 Install Wiring
to understand but is more easily 1.1.4.2 Install Outlets/Switches
1.1.4.3 Install Fixtures
incorporated into a report format. 1.1.5 Interior
1.1.5.1 Install Drywall
Note the WBS codes and the structure of the 1.1.5.2 Install Carpets
Levels in the Tree format mirror the 1.1.5.3 Install Painting
1.1.6 Roofing
graphical format. The content has not 1.1.6.1 Install Felt
1.1.6.2 Install Shingles
changed; only the way the content is 1.1.6.3 Install Vents
presented has changed. Module 2 – Work Breakdown Structure 15
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 WBS and Earned Value

Now that you understand the WBS and how to assemble one, let’s examine how it relates to
earned value.
In Module 1, we discussed that in implementing earned value, a project manager must have
control of the project’s “triple constraint” (scope, schedule and cost). Unlike traditional
management, which tracks two components (budget and expenditures), earned value
considers three and provides a more robust understanding of a project’s overall progress and
health.
The WBS is the most important item in defining and controlling the project scope. How does it
control the scope? If the WBS is not developed correctly and does not capture all the project
scope and only the project scope, then the “earned value” system built using the WBS will be
inaccurate. The project manager will lose control of the project before it even begins.

Now that you have your WBS, let’s take a look on the next page at the other item needed to
Module 2 – Work Breakdown Structure 16
properly organize your project. Prepared by: Booz Allen Hamilton
 WBS Dictionary

Once the WBS is complete, the WBS dictionary needs to be the next item developed.
The WBS dictionary is a narrative documentation of the effort needed to accomplish all
work defined in the WBS. The WBS dictionary is developed for the lowest level
element in the WBS only.
To better understand how a WBS and a WBS dictionary work, let’s compare it to a book
and the book’s table of contents:
– The WBS is the table of contents for the project. It captures the contents in an
organized fashion (chapters, subchapter).
– The WBS dictionary is the book itself. It tells the story. In our case the story is what
work will be accomplished and what outputs will be produced in each of the WBS
elements. The total of these descriptions is how a house will be built and what is
needed to build the house.
The WBS dictionary will often lead to the development of the statements of work (SOW)
Module 2 – Work Breakdown Structure 17
for the project. SOWs will be discussed in later modules. Prepared by: Booz Allen Hamilton
 Organization Breakdown Structure (OBS)

Now that our WBS is developed, the appropriate resources and responsibilities need
to assigned. The first step in doing this is developing the Organizational
Breakdown Structure (OBS) for the project. The OBS indicates the organizational
relationships and is used as the framework for assigning work responsibilities.
Below is an example of the OBS for the ACME house building project. The OBS is
structured by Responsible Department and then by Performing Department at the
lowest level. This Performing Department level is were the responsibility and
resource needed to accomplish the project will be assigned. PROJECT OFFICE
RESP DEPT
B. Smithers

CIVIL STRUCTURAL ELECTICAL PLUMBING

With the relationships and RESP DEPT
R. Kelly
RESP DEPT
P. Tate
RESP DEPT
J. Sims
RESP DEPT
R. Lee

responsibilities defined, the CONCRETE CARPENTRY WIRING WATER/SEWER

second and final step is to PERF DEPT 6010

M. Manning
PERF DEPT 5010
R. Sites
PERF DEPT 4010
S. Johnson
PERF DEPT 3010
K. Wells

merge the WBS and OBS. MASONRY

PERF DEPT 6020
ROOFING
PERF DEPT 5020
HOOKUP/TIE-IN
PERF DEPT 4020
GAS
PERF DEPT 3020
T. Greams Y. Taylor P. Ottis R. Oriely
Take a look on the next TEST DRYWALL
PERF DEPT 6030 PERF DEPT 5030
page. K. Neumann D. Smith Module 2 – Work Breakdown Structure
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18
 Responsibility Assignment Matrix (RAM)

Merging the WBS and OBS, the project manager creates a Responsibility Assignment
Matrix (RAM). The RAM displays the lowest level of both the WBS and the OBS. The
integration identifies specific responsibility for specific Project tasks.
It is at this point that the project
manager develops control accounts or
work package. Control accounts and
work packages will be discussed in
Module 4. Lets look at what the RAM
may look like on the ACME house

PERF DEPT 3010

PERF DEPT 3020

WATER/SEW ER

R. Oriely
PLUMBING
RESP DEPT

K. Wells

GAS
R. Lee
construction project on the next page.

PERF DEPT 4010

PERF DEPT 4020

HOOKUP/TIE-IN
S. Johnson
Responsibility

RESP DEPT

WIRING
ELECTICAL

P. Ottis
J. Sims
PROJECT OFFICE
Assignment Matrix

B. Smithers
RESP DEPT

PERF DEPT 5010

PERF DEPT 5020

PERF DEPT 5030

CARPENTRY

DRYWALL
STRUCTURAL

ROOFING

D. Smith
Y. Taylor
R. Sites
RESP DEPT
P. Tate

PERF DEPT 6010

PERF DEPT 6020

PERF DEPT 6030

K. Neumann
CONCRETE

M. Manning

MASONRY

T. Greams
RESP DEPT

TEST
R. Kelly
CIVIL

Module 2 – Work Breakdown Structure 19

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 Responsibility Assignment Matrix (RAM)

Below is part of the RAM for the ACME housing project.

– The lowest level of the WBS appears across the top
– The lowest level of the OBS appears on the vertical axis
An “X” appears at the intersection of the WBS task and OBS personnel. The “X”
defines the specific performing department (from the OBS) assigned to complete
a task (from the WBS). CONCRETE
1.1.1
FRAMING
1.1.2
PLUMBING
1.1.3
Frame Frame Install Install
Pour Pour Exterior Interior Roofing Water Install Gas Install B/K
Foundation Install Patio Stairway Walls Walls Trusse Lines Lines Fixtures
Performing Dept. Manager 1.1.1.1 1.1.1.2 1.1.1.3 1.1.2.1 1.1.2.2 1.1.2.3 1.1.3.1 1.1.3.2 1.1.3.3
CONCRETE
DEPT 6010 Manning X X X
MASONRY
DEPT 6020 Greams X
TEST
DEPT 6030 Neumann X X X
CARPENTRY
DEPT 5010 Sites X X X
ROOFING
DEPT 5020 Taylor X
DRYWALL
DEPT 5030 Smith X
WIRING
DEPT 4010 Johnson
HOOKUP/TIE-IN
DEPT 4020 Ottis
WATER/SEWER
DEPT 3010 Wells X X
GAS
DEPT 3020 Oriely Module 2 – Work BreakdownXStructure X 20
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 Responsibility Assignment Matrix (RAM)

To better understand the RAM, CONCRETE FRAMING PLUMBING

1.1.1 1.1.2 1.1.3
consider the ACME housing Frame Frame Install Install
Pour Pour Exterior Interior Roofing Water Install Gas Install B/K
project. Foundation Install Patio Stairway Walls Walls Trusse Lines Lines Fixtures
Performing Dept. Manager 1.1.1.1 1.1.1.2 1.1.1.3 1.1.2.1 1.1.2.2 1.1.2.3 1.1.3.1 1.1.3.2 1.1.3.3
The OBS specifies Mr. Sites and CONCRETE
DEPT 6010 Manning X X X
the carpentry department as MASONRY
X
responsible for framing the DEPT 6020
TEST
Greams

exterior walls. Therefore, in the DEPT 6030 Neumann X X X

CARPENTRY
RAM, an X appears at the DEPT 5010 Sites X X X
ROOFING
cross-section between the DEPT 5020 Taylor X
task, framing the exterior walls, DRYWALL
DEPT 5030 Smith X
and the responsible party, Mr. WIRING
DEPT 4010 Johnson
Sites. Additionally, Mr. Sites is HOOKUP/TIE-IN
DEPT 4020 Ottis
also responsible for framing WATER/SEWER
X X
the interior walls and installing DEPT 3010
GAS
Wells

the roofing trusses. DEPT 3020 Oriely Module 2 – Work Breakdown Structure X 21 X
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 Review of Module 2

Take some time to review the major items of this module:

• The Work Breakdown Structure (WBS) is a tool that defines a project and groups the projects
elements in a way that helps organize and define the total work scope of the project
• In preparing a WBS there are a number of steps that need to be taken including:
– identifying the final project product
– identifying the major deliverables
– incorporating the appropriate levels of detail
– obtaining stakeholder agreement
• WBS Dictionary is a narrative description of the lowest level for each WBS element
• Organizational Breakdown Structure (OBS) indicates the organizational relationships and is
used as the framework for assigning work responsibilities
• Responsibility Assignment Matrix (RAM) merges the WBS and OBS to identify the specific
responsibility for specific project tasks Module 2 – Work Breakdown Structure 22
Prepared by: Booz Allen Hamilton
 Summary

At this point we have examined the WBS, WBS dictionary, OBS and RAM.

23
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